Paolo Ardoino Claims Competitors Aim to Sabotage Tether, Critiques New Stablecoin Regulations
Tether's CEO, Paolo Ardoino, accuses competing firms of attempting to undermine Tether's market position as the U.S. Congress reviews impending stablecoin regulations.
While promoting Tether’s US dollar-pegged stablecoin, USDT, as an essential mechanism for maintaining US Dollar influence in emerging markets, Tether’s CEO, Paolo Ardoino, accused competitors of trying to destroy Tether.
In a detailed post on X dated February 25, 2025, Ardoino stated, “While our competitors’ business model should focus on developing superior products and larger distribution networks, their true aim is to ‘Kill Tether.’
“Every business or political meeting they convene concludes with this goal,” Ardoino remarked. “Although it might sound exaggerated, it’s a reality recognized independently by countless individuals within and outside the digital asset sector who are in contact with the US government.”
With the US Congress evaluating new stablecoin legislation, Ardoino expressed worry about what he views as intentional maneuvers by rivals to weaken Tether’s position in the stablecoin industry.
Additionally, Ardoino’s comments responded to increasing speculation regarding an anticipated stablecoin bill that could profoundly affect global issuers like Tether.
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Ardoino Alleges “Regulatory Capture”
I don’t often speak directly about regulations, but I want to highlight a developing regulatory dispute occurring in Washington D.C.
The forthcoming stablecoin framework seemingly has provisions designed to restrict centralized international stablecoins from accessing the treasury market…
— Vance Spencer (@pythianism) February 24, 2025
The issue arose due to a warning from Vance Spencer, the co-founder of Framework Ventures, about an upcoming stablecoin bill that could deny offshore stablecoin issuers from entering US Treasury markets.
Spencer berated this initiative as an illustration of “regulatory capture,” where domestic entities supposedly leverage legislative power to disadvantage foreign challengers. He contended that these actions would undermine the US dollar’s global supremacy, thus marginalizing international stablecoin issuers like Tether.
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Tether Conflicts With JPMorgan Over Bitcoin Liquidation Proposal
Analysts at JPMorgan propose that Tether will have to liquidate some assets to meet US stablecoin compliance standards.
Interestingly, they recommended that Tether sell Bitcoin, precious metals, corporate paper, and secured loans. Being the leading stablecoin firm, Tether may encounter difficulties due to new regulations introduced.
The STABLE Act establishes more stringent reserve requirements and allows states to impose regulations. Concurrently, the GENIUS Act necessitates federal oversight for significant issuers and endorses employing a broader array of reserve assets.
Digital Assets Subcommittee Chairman Bryan Steil remarked on the looming stablecoin regulations: “By creating a clear regulatory framework for payment stablecoins, we can foster ongoing innovation, reinforce the US dollar’s stature as the global reserve currency, and safeguard consumers and investors.”
The JPMorgan team also warned, “US stablecoin regulations demanding increased transparency and regular reserve audits create additional hurdles for Tether.” Reports indicate that 34% of Tether’s reserves may not comply.
